What's with Biden claiming that rich people are paying 8.5% in federal income taxes, when he knows this isn't true? Apparently, what Biden has been doing is ignoring the currently-accepted definition of "income" and using what his economic advisors would like to define as income to determine how they think taxes should be calculated. What kinds of things would they like to include as income? Benefits from your job would be characterized as income. Increases in value of assets (like your house, or any stocks you own) would be declared as income (even if you do not sell the asset). This, of course, would complicate everyone's taxes. Apparently, the feeling is that this would increase tax revenues, but of course, it is basically borrowing from future tax revenues to increase today's tax revenues (when you actually do sell the house, you will have paid most of the taxes from increases in value). I feel like Biden should tell the truth here, and leave out the fantasies of his foolish advisors. He should not go into an election telling whoppers like this, especially when he should probably distinguish himself from a likely opponent who tells lies constantly. Biden keeps saying billionaires pay 8 percent in taxes. Not really.
LMAO, when has the truth ever mattered to Joe Biden? The only question here is whether he plagiarized this tripe or came up with it on his own. Probably some smarmy 28 year old just out of an Ivy League told him "just say it, don't question me."
We're talking about a tax rate. Richard covey was on a podcast talking about exactly how it's done. He was a tax lawyer for the American bankers association for 20 plus years
Not just any lawyer. I think it's called a grat. He helped come up with it and the Walton family began using it. The IRS tried to go after them for using a grat and lost. Look it up. This is not some ordinary guy and this method is still used today by billionaires. It is still legal and saves them a ton of money in taxes
The top 5% of income earners pay over 62% of federal income taxes. The top half of income earners pay almost 98% of federal income taxes. If you're in the bottom half of income earners in America, on average you are paying 3% of your income to the IRS.
You can define income many different ways. I do agree it is kind of deceptive but at the same time it shows there are ways to increase wealth and have no immediate tax impact.
2014 is pre-tax cut for rich. Seems like a weird year to use as comparison unless the writer had an agenda?
Wealth and income are two very different things. The latter is an element of the P&L (current operations) while the former is a balance sheet item (financial condition). If you tax "income" it is an annual confiscation of an asset that will not be taxed again. If you tax "wealth" the result is the annual confiscation of accumulated income over and over and over again. If folks think tax compliance is complex and costly now …. Z just wait until every taxpayer is required to determine the FMV of all assets and liabilities every 12/31 just to file their tax return. Think abuse is bad now, just enact an annual tax on wealth!!
Not "bitching" about anything. The point is the U.S. already has one of, if not the most progressive tax systems in the world. For those that say the ones at the bottom just need a little more help, a little more opportunity, truth is.. they are already getting it. Especially, when you add in all of the other subsidies they receive. However, you need the ones at the top to keep that system vibrant. If you begin penalizing them more and more, eventually, they lose the incentive to fund that system and will actually look for ways to make sure they don't fund it. In the era of interconnectivity, globalization and crypto, my guess is the uber wealthy would find creative ways to move money around if it gets too out of hand.
And their (top 1%) share of income taxes was over 40% in 2020. Summary of the Latest Federal Income Tax Data, 2023 Update
I suspect with billionaires, it's more about short and long term capital gains rather than ordinary income. There are also other advantages for the very wealthy, such as payroll taxes being capped, various tax avoidance/mitigation strategies, etc. I remember the debates following Warren Buffett saying his secretary was paying a higher effective tax rate than he was.
The super wealthy often employ the buy, borrow, die strategy. Buy appreciating assets. Borrow against them. Die and pass along those assets. This way they avoid cap gains, allow said assets to grow, deduct interest paid, avoid having income, and then pass it all along to their heirs on the cheap (step-up basis). There's nothing illegal about this.
Billionaires don't pay capital gains taxes? Payroll taxes are supposed to be returned to you as a benefit. (ie social security wages, unemployment). It makes sense they top out where they do, as one cannot pay $500,000 a year in payroll taxes and expect to receive a $25,000 social security check every month from the government once they hit retirement age.
Sure, but the cost basis was already taxed at the regular income tax rate, so the government is already double-dipping with capital gains taxes and your complaint is it's a lower rate than the top bracket for ordinary income? If you want to kill incentive for investment, raise the capital gains to equal or above the top bracket for ordinary income. Our economy would crater overnight.
